155.Tipper Co. is considering a 10-year project that is estimated to cost $700,000 and has no residual value. Tipperseeks to earn an average rate of return of 15% on all capital projects. Determine...

155.Tipper Co. is considering a 10-year project that is estimated to cost $700,000 and has no residual value. Tipperseeks to earn an average rate of return of 15% on all capital projects. Determine the necessary average annualincome (using straight-line depreciation) that must be achieved on this project for it to be acceptable to TipperCompany.

156.Proposals A and B each cost $600,000 and have 5-year lives. Proposal A is expected to provide equal annual netcash flows of $159,000, while the net cash flows for Proposal B are as follows:

Determine the cash payback period for each proposal. Round answers to two decimal places.

157.A project has estimated annual net cash flows of $60,000. It is estimated to cost $240,000. Determine the cashpayback period.

158.Identify four capital investment evaluation methods discussed in the chapter and discuss the strengths andweaknesses of each method.